DEFENCE

Ministry of Defence Estate Strategy

Don Touhig: The departmental Strategy for the Defence Estate 2006—In Trust and On Trust will be published today. It builds on the robust foundations and achievements of In Trust and On Trust: The Strategy for the Defence Estate published in June 2000—the first comprehensive strategy for the management and use of the Ministry of Defence's estate—but it recognises new challenges and aspirations. The strategy will continue to deliver a more efficient and effective estate and ensure that the Ministry of Defence targets resources to the estate in the most effective way. Copies will be made available in the Library of the House; it will also be available via the MOD website at: www.mod.uk.
	The strategy is aimed at all estate stakeholders, and the Ministry of Defence has consulted closely with external stakeholders who have an interest in the defence estate. The primary challenge is to produce an estate that enables the Armed Forces to counter new and existing threats, and respond effectively to the changing demands and requirements placed upon them. The ability to provide effective training, living and working facilities for our service personnel and those who support them is crucial to the successful outcome of Ministry of Defence business. Sustainable development will continue to be at the heart of all departmental estate planning and management processes. This is a far reaching document which will be of benefit to all those with an interest in the Ministry of Defence's estate.

Defence Estates Stewardship Report

Don Touhig: The Stewardship Report on the Defence Estate 2005 will be published today. The publication of the report implements the commitment in the Defence Estate Strategy "In Trust and On Trust" to report annually performance across a range of estate-related objectives, and to demonstrate that the Department is discharging its obligations properly and acting responsibly in meeting the needs of the Armed Forces. The report attempts to balance:
	(a) describing the substantial investment made in the estate, the successes over the year, the other steps being taken to improve the effectiveness of management and the achievement of value for money, with
	(b) the commitment to provide an account of our stewardship to external stakeholders.
	The report is similar to previous ones in that it sets out the progress against the aims and objectives in the Defence Estate Strategy and demonstrates how the estate is changing as a result. Copies will be made available in the Library of the House; it will also be available via the MOD website at: www.mod.uk.

ENVIRONMENT FOOD AND RURAL AFFAIRS

Agriculture and Fisheries Council

Margaret Beckett: I will be representing the United Kingdom at this month's Agriculture and Fisheries Council.
	The Health and Consumer Protection Commissioner will update the Council on developments with regard to the spread of the Avian Influenza H5N1 virus.
	There will be a presentation by the Commission on measures to support the poultry sector, as a result of the economic impact on the poultry market due to the consumer reactions to avian influenza. Consumption of poultry in several member states has fallen, despite scientific advice that there is no food safety risk from properly cooked poultry meat.
	The Council will then adopt proposals on changes to the rules for protected geographical indications and traditional specialties for agriculture products.
	In the afternoon, there will be a policy debate on the review of the sustainable development strategy based on presidency questions. I will intervene to draw attention to the main areas where European agriculture and fisheries policy can contribute to sustainable development.
	There will be discussion of a French memorandum calling for more simplification of the CAP and the introduction of new measures for the management of market risks and crises. I will stress the importance of avoiding new EU measures which contradict the market direction of recent reforms of the Common Agricultural Policy.
	The Commissioner for Agriculture and Rural Development will update the Council on the WTO agricultural negotiations including the outcome of the G6 Trade Ministers meeting in London last weekend.
	Italy will urge the Commission to resume the European Union's voluntary contribution to the International Olive Oil Council's promotional work.

Seafish Industry Authority

Ben Bradshaw: The Sea Fish Industry Authority (SFIA) was established in 1981 to serve the interests of the UK sea fish industry. It is regulated by the four fisheries administrations in the UK.
	An independent review of the SFIA was conducted and the report was published in February. An initial Government response to the review, setting out proposals for the future of the SFIA, was also released for public consultation in February. Stakeholders are invited to engage in discussion with the SFIA during a 12 week consultation period and then provide comments regarding their views to the four fisheries administrations (DEFRA, SEERAD, WAG and DARDNI) by 5 May.
	Stakeholder views will be taken into consideration by Ministers and recommendations will be discussed with the SFIA when issuing the final response later this summer.
	Copies of the Report and the initial Government response have been published on the DEFRA and SEERAD websites and been placed in the Commons and the Public Library. In addition, a press release was published in Fishing News, The Grocer and other regional publications.
	Details of the procedure for consultation can be found on the DEFRA and SEERAD websites.

HOME DEPARTMENT

Police Force Restructuring

Charles Clarke: Further to my written statement of 20 March, I should like to make a statement to report progress on the review of police force structures in the Yorkshire and the Humber region.
	My statement of 20 March set out the way forward for the east midlands, south- east and eastern regions. This followed similar statements on 6 February and 3 March which set out the way forward for Wales and three English regions, the north-east, the north-west and the west midlands. I now have the professional policing and financial assessments to enable me to identify which option will be of the greatest benefit to the Yorkshire and the Humber region. I am therefore today meeting the representatives from the police forces and authorities in this area and, as with the other force and authorities, I will be inviting them to engage closely with me to consider taking forward the option for policing which I believe will be of greatest benefit to their communities. I will be inviting the police authorities concerned to respond by 7 April and I shall then make a final decision on how to proceed in this area.
	I shall make a further report to the House about the way forward for forces in the south-west in May.
	Options proposed at this stage as suitable for progression
	Yorkshire and the Humber
	Merger of Humberside, North Yorkshire, South Yorkshire and West Yorkshire.

NORTHERN IRELAND

Police Pensions

Peter Hain: With the introduction of a new tax regime for pensions from 6 April of this year, it will be necessary for pension schemes to be registered with HM Customs and Revenue before receiving tax privileges. As a result of the discrete way in which the current pension scheme for the Police Service of Northern Ireland was established the scheme will be registered separately from the scheme for officers serving in Home Forces in Great Britain. To coincide with the tax changes, three new police pension schemes are being introduced from April 2006. As a result, officers transferring between Northern Ireland and Great Britain on or after 6 April would not be able to remain in the current pension scheme arrangements as these will be closed to new members from that date. As matters now stand, officers wishing to continue to contribute to a police pension would be obliged to move into one of the new schemes on transfer.
	In view of the need to ensure that currently serving police officers can continue to move between the PSNI and GB police forces as at present, the Government (in consultation with Scottish Ministers) have decided that the current police pension schemes across the United Kingdom should be unified. I therefore intend to seek parliamentary approval to amend the Police (Northern Ireland) Act 1998, and the Police Pensions Act 1976 to allow the pension schemes to be formally merged. This will allow officers serving at present, who transfer on or after 6 April to remain in the current pension scheme on permanent transfer, should they so wish. This will apply to police officers serving in England, Wales, Scotland and Northern Ireland who are members of the current pension scheme on 6 April.
	Later this year serving officers will have the opportunity to move across to a new police pension scheme. Today's announcement is to clarify the position for those officers who might not wish to join a new police pension scheme, but who may wish to apply for posts elsewhere in the United Kingdom to gain experience or promotion.
	After the current pension schemes in Northern Ireland and Great Britain have been merged, police officers in post before 6 April would be able to transfer from Northern Ireland to Great Britain, and vice versa, without having to move into the new pension arrangements. However, as the parliamentary process necessary to merge the schemes will take some time, the Government propose that officers transferring between the PSNI and GB forces in the interim will be able to do so under conditions which enable them to remain in the current arrangements. It is envisaged that these interim transfer conditions will last up to three years.

Review of Public Administration

Peter Hain: I am today announcing the final outcome of the Review of Public Administration (RPA) in Northern Ireland. My previous announcement of 22 November 2005 dealt with local government, education and the major health and social services bodies. Today I want to deal with the remaining Executive Agencies and Public Bodies, as well as a number of residual issues carried forward from the 22 November announcement.
	In addition to the major organisations in local government, health and social services and education, there is a plethora of other bodies that fulfil a variety of roles in the overall system of public administration. These include 15 executive agencies, 39 Executive and 16 Advisory Non Departmental Public Bodies or QUANGOS and 11 Tribunals: a total of 81 public bodies.
	A variety of views were expressed in the consultation process on the future of these executive agencies and public bodies. However, in general, the responses reflected a concern about the number of public bodies and a recognition of the need for improved accountability. While it is acknowledged that there is a role for quangos in the future arrangements for public administration in Northern Ireland, it is accepted that these should only be retained or established when there are clear advantages to the arm-length relationship.
	I have now had time to reflect on all of the evidence and to take account of the views of the major stakeholders, including local government, to which significant extra functions will be transferred as a result of today's decisions. In order to streamline public administration, clarify accountability, and ensure public services are easily accessible and customer-focused, the total number of these bodies remaining will be reduced from 81 to 53. Taken together with the decisions that I announced in November 2005, this means an overall reduction in public bodies in Northern Ireland from 154 to 75—51 per cent. The changes announced in November and today will result in savings in excess of £200 million per annum, and demonstrate the Government's commitment to cutting waste and strengthening front-line services in Northern Ireland.
	The changes I am announcing today will be achieved, in the main, by merging bodies or transferring complete functions to local government or Central Government. Many of the remaining bodies will have reduced responsibilities through some of their functions transferring to local government. All of the bodies that remain will be required to work with councils in the community planning process. Functions that are transferred to local government will be accompanied by an equivalent transfer of funding. To achieve this, a new system of local government financing will be developed.
	Where there are a number of bodies carrying out related functions we propose to merge these into one new organisation, streamlining the delivery of those functions and saving overheads. There will be a new Land and Property Services Agency that will incorporate the Valuation and Lands, Rate Collection, Land Registers and Ordnance Survey Agencies. Similarly, in the area of the environment and heritage, key functions are currently spread across the Environment and Heritage Service, and the Rivers Agency, supported by four advisory bodies: the Council for Nature Conservation and the Countryside, the Historic Buildings Council, the Historic Monuments Council and the Drainage Council. On 28 February 2006 we launched an independent review of environmental governance which we expect to result in the creation of an independent agency to deliver a comprehensive range of environmental functions.
	I am also announcing the establishment of a new regional library authority that will have responsibility for all libraries across Northern Ireland. It will have the capacity to develop the service beyond purely educational needs, providing a valuable resource for the wider community and recognising that the library has cultural, recreational and community roles.
	Other bodies will merge into existing organisations, reducing overheads and facilitating better joined-up working. The Northern Ireland Events Company will become part of the Northern Ireland Tourist Board; the Pig Production Development Committee will become part of the Livestock and Meat Commission, and five existing health bodies, namely, Health Estates, the Central Services Agency, the Mental Health Commission, the Practice and Education Council for Nursing and Midwifery, and the Medical and Dental Training Agency, will be merged into the new health and social services structures. Driver and Vehicle Licensing will merge with the Driver and Vehicle Testing Agency, and the Construction Industry Training Board will amalgamate with the ConstructionSkills Sector Skills Council.
	Other functions will be transferred to either central or local government, not only streamlining these functions but also clarifying lines of accountability. The functions of the Public Records Office, the Fisheries Conservancy Board and the civil service's internal consultancy service will transfer to their parent central government departments. The Northern Ireland Fishery Harbour Authority and the Fire Authority for Northern Ireland will transfer to local government, as will the Local Government Staff Commission once the new councils have been established. The delivery of rural development functions will also transfer to local government while the remaining policy development functions of the Rural Development Council will transfer to central government. Similarly the functions of the Northern Ireland Museums Council will transfer to local and central government. Once the new councils are established consideration will be given to the transfer of ILEX to the new council in the North West. The functions of the Disability Living Allowance Advisory Board will transfer to the equivalent GB body, whose remit will be extended.
	A further number of bodies will cease to exist. These are: the Northern Ireland Housing Council, the Agriculture Wages Board and Enterprise Ulster.
	Finally, local government will receive additional functions, and the accompanying funding, from some of the bodies that will remain. Some of the funding currently administered by the Arts Council and the Sports Council will become the responsibility of local government, as will some of the functions of the Northern Ireland Tourist Board and Invest Northern Ireland.
	We believe that housing is essentially a local issue and for that reason we will consider the transfer of housing to local government at a future date, once the new councils are in place, fully operational and bedded in. In the meantime, however, while the Northern Ireland Housing Executive will remain, some of its non-core functions will transfer to local government when the new councils are established in 2009.
	In recognition of the significant strengthening of local government within the context of a smaller number of councils, I have reconsidered my earlier decision to reduce the overall number of councillors to 50 per council, giving a total of 350. Instead, the Order that I will be putting before Parliament to direct the Local Government Boundary Commissioner, who will make the recommendation on the final number of wards for each council, will be on the basis of approximately 60 councillors per council, thus increasing overall councillor numbers to around 420 compared with 582 now.
	It is essential that, for those public bodies which remain, accountability is clear. For the future, all Board members will be appointed under the guidelines laid down by the Commissioner for Public Appointments. Public bodies are accountable to their sponsoring Minister and through that Minister to the Assembly or Parliament. Board members must be chosen solely on the basis of the skills and expertise necessary to do the job. All appointments are to be made on merit and no one should be appointed to any position solely because they hold a particular position in another organisation.
	There are a number of tribunals in Northern Ireland which deal with employment disputes and appeals arising from certain decisions taken by Government Departments and other public bodies. These are mainly funded and provided with administrative support by the Department responsible for the relevant area of policy. These arrangements have been considered in the light of reforms in England and Wales and of concerns about the independence of tribunals under their current administrative relationships with Departments. To secure greater independence and more streamlined administration, responsibility for the administration of those Tribunals currently sponsored by Departments will transfer to the Northern Ireland Court Service as part of a new Courts and Tribunals Service.
	All of my decisions have been underpinned by consideration of the implications for equality, social need, good relations, human rights and rural communities. The local administration arrangements will provide an anchor for A Shared Future and ensure that good relations actions are earthed in the needs of local communities. There are clear expectations that my decisions will lead to improved accessibility to public services— particularly for those most vulnerable in our society—improvements in the diversity of people who participate in public life, and fair treatment for staff. I believe that these three issues should be a central part of the decisions taken within organisations, sectors and across the public sector as a whole during implementation.
	The decisions I have announced on the RPA will cut costs and transfer resources from bureaucracy to front-line delivery of key public services.
	I have today published a summary of the full range of decisions flowing from the RPA. Copies have been placed in the Libraries of the House. All of the evidence gathered as part of the research that led to the final decisions is published on the review website at www.rpani.gov.uk.

TRANSPORT

Northern Rail Franchise

Derek Twigg: I am today announcing the conclusions of the review of the Northern rail franchise. Copies of the consultant's report detailing their review will be placed in the House Library.
	Northern Rail, one of the largest franchises, provides services across the north–east, north-west and Yorkshire and Humber. Passenger journeys have grown by 10 per cent. in the past 12 months, and now stand at more than 71 million passenger journeys each year and public performance measure is currently 89 per cent.
	The projected public subsidy is £2.4 billion (in 2004 prices) for the 8¾ year period of the contract. Collectively, the five northern Passenger Transport Executives (PTEs) are co-signatories to the agreement and sponsor the majority of Northern services.
	The Strategic Rail Authority initiated a review in March 2005 with the purpose of reviewing the current timetable, which had not changed over several years, to ensure it meets present day demand and secures value for money for the taxpayer.
	The review started with a comprehensive assessment of the franchise in its present form. It looked at the different markets served, current and future demand, revenue, costs, the number of trains being used and funding arrangements. It considered options for cost changes.
	The review found that the franchise operates efficiently, with its trains allocated to meet the needs of peak time travel into the major towns and cities.
	It found that revenue through fares, at 11p per passenger mile is lower than for other comparable rail operators. In the PTE areas, which account for 72 per cent. of passenger journeys, the figure is as low as 8p per passenger mile.
	In the light of these findings, and the growth which the franchise is currently experiencing the Department has concluded that there is no compelling case for amending the current timetable or allocation of rolling stock. Service patterns will not change as a result of this review. The current levels of subsidy are also unaffected by this review.
	There has been concern within the regions affected that the service review would lead to service cuts and fail to support predicted growth and economic development. We are committed to supporting current and future rail services in this franchise area and across the rail network. We will continue to work closely with Northern Rail and Passenger Transport Executives to make sure services meet future demand and that Government policy for the regions is supported.

Civil Aviation Authority (Price Control Review)

Alistair Darling: My Department has responded to the Civil Aviation Authority's Price Control Review consultation. The response makes the following points.
	The economic regulation of London airports is, in general, supported by users. Regulation is designed to further the interests of airport users, promote efficient operation of airports and encourage investment in new airport facilities.
	Air travel is essential to the United Kingdom's economy and to our continued prosperity. Airports are a key part of the country's strategic transport infrastructure and are important drivers of regional growth and employment. For these reasons, securing the delivery of the White Paper, "The Future of Air Transport" (Cm 6046), remains central to Government policy. This is most urgent in the south-east of England, where the White Paper recommends two additional runways be provided by 2030, with the first to be delivered as soon as possible at Stansted.
	The Government therefore support the view, recently expressed by the CAA, that it is important that any owner of a London airport should recognise the significant near and medium-term investment requirements. This is likely to require the maintenance of credit quality sufficient to ensure the cost-effective financing of future investment.
	The Government welcome the CAA's approach to the equitable sharing of surface access costs between aviation users and the public sector. The White Paper makes clear the importance of airport operators making a proportionate contribution to the costs of any road or rail improvements catering for airport-related traffic. The Government are actively considering these issues in respect of the London airports, and will keep the CAA informed.

WORK AND PENSIONS

Pension Transfer Values

Stephen Timms: When a person moves their pension rights from one scheme to another, a cash value is put on those pension rights and that cash sum is passed from one scheme to the other.
	The Government have delegated to the actuarial profession the responsibility for specifying the framework within which actuaries must work when advising pension scheme trustees on the calculation of transfer values.
	Recently the actuarial profession consulted on changes to their guidance on the calculation of transfer values. The consultation gave rise to a significant difference of view on the way forward.
	The Government have been in discussion with the profession about the results of their consultation. We have now agreed with the profession that the time is right for the Government to set out the principles in legislation that should underpin the calculation of transfer values.
	The Government intend to consult soon on draft regulations designed to reflect these principles.